Cadbury's gum acquisition approved in Turkey

Cadbury announced the proposed $450m (€333m) acquisition in June this year, claiming the move would help the company improve profit margins in its confectionery divisions as part of its ongoing reorganisation. "The purchase of Intergum is aligned with our strategy of pursuing bolt-on acquisitions to further strengthen our confectionery platform,"​ Todd Stitzer, Cadbury's chief executive officer said in June. Cadbury said today that the sale is on the condition the UK-based company sells its Nazar gum brand, which had a 2.6 per cent share of Turkey's gum market in 2006. In 2006, Turkey's gum market alone had a value at retail of $232m (€172m) and grew by 17 per cent, of which Intergum had a 46 per cent share, according to Cadbury. The brand had revenues of $109m (€81m) in 2006 of which about 25 per cent was from exports, the company said. "Intergum is highly complementary to our current operations in​ Turkey​, where we have a leading position in the candy market,"​ Stitzer added at the time of the announcement. Following approval from the Turkish Competition Board, Cadbury has said the acquisition "is expected to complete shortly​". Euromonitor told ConfectioneryNews.com earlier this year that Cadbury's financial results indicate that its chewing gum brands are already showing potential for growth within the market, with the company's revenues in the segment surging by 10 per cent in 2006.